The latest car sales figures confirm that the UK is beginning to grow and recover whilst the Euro area remains mired in deep recession. The five months to May saw car sales in the UK rise by 11%. In Germany car sales fell 8.8%, in France they fell by 11.9% and in Italy by 11.3%. Continental car sales were very weak in 2012 as well.
In the UK the inflation figures for last month came out a little higher thanks to air fares and petrol. The underlying inflation figures were better and point to likely further falls in the rate . A more stable pound and falling commodity prices will also help.
Confidence is picking up in the Uk economy according to latest surveys. House prices have started to advance and there is a pick up in building as a result.